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Latvian Economy after Brexit

There are no direct indications that the United Kingdom's decision to leave the EU would have a long-lasting impact on the economy and financial markets, said Valdis Dombrovskis, Vice-President of the European Commission, as reported by Latvian Radio.

Mr Dombrovskis told Latvian Radio that instability in financial markets was only to be expected following the vote.

"However, the question is whether this instability will have long-lasting consequences for the European economy and financial markets. As of now, there are no direct indications [that would testify] to that," said Mr Dombrovskis.

He said that different models of cooperation between the UK and the EU are possible – ones with or without direct access to the EU single market, and with or without free movement of workers.

"The UK itself needs to make these decisions – exactly how they see future cooperation. The faster they make it clear, the less uncertainty and speculation there'll be," he said.

Replying to the question of whether the outcome of the referendum could influence the stability not only of the British pound but of the euro as well, he said that the current fall in currency value reflects worries in the financial markets.

"However, I'll stress this again – at the moment there's no reason to think that these worries will have any lasting consequences," Mr Dombrovskis said.

Mr Dombrovskis recently took over the portfolio of Britain's EU Commissioner following Jonathan Hill's resignation from the post. He told Latvian Radio that it was a surprise to him, and he had tried convincing Hill to remain in office. "My goal here will be ensuring the inheritability of the jobs that have already been started," he said.

Prime Minister Māris Kučinskis is to present Latvia's official position on the UK exit talks at the European Council meeting starting Tuesday.

According to a Foreign Ministry statement, the Latvian Government will make every effort to protect its national interests, the interests of Latvian nationals in the UK and the EU’s common interests.